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A main focus in economics research is understanding the time series of prices of goods and assets. While statistical models using only the properties of the time series itself have been successful in many aspects, we expect to gain a better…

Physics and Society · Physics 2014-12-15 Dániel Kondor , István Csabai , János Szüle , Márton Pósfai , Gábor Vattay

We investigate the spatial and temporal structures of four financial markets in Greater China. In particular, we uncover different characteristics of the four markets by analyzing the sector and subsector structures which are detected…

Statistical Finance · Quantitative Finance 2014-04-24 F. Y. Ouyang , B. Zheng , X. F. Jiang

During the last decade, road network vulnerability assessment has received an increasing attention. On one hand, it is due to the significant advances in Network Science and the potentialities that its tools offer. On the other hand, it is…

Applications · Statistics 2019-04-09 Felipe Vaca-Ramírez

Using the diagrammatic method, we derive a set of self-consistent equations that describe eigenvalue distributions of large correlated asymmetric random matrices. The matrix elements can have different variances and be correlated with each…

Disordered Systems and Neural Networks · Physics 2016-12-21 Alexander Kuczala , Tatyana O. Sharpee

We investigate the financial network in the Korean stock exchange (KSE) market, using both numerical simulations and scaling arguments. We estimate the cross-correlation on the stock price exchanges of all companies listed on the the Korean…

Physics and Society · Physics 2007-05-23 Seong-Min Yoon , Kyungsik Kim

We provide a framework for detecting relevant insurance companies in a systemic risk perspective. Among the alternative methodologies for measuring systemic risk, we propose a complex network approach where insurers are linked to form a…

Risk Management · Quantitative Finance 2020-11-24 Gian Paolo Clemente , Alessandra Cornaro

We study how the phenomenon of contagion can take place in the network of the world's stock exchanges due to the behavioral trait "blindeness to small changes". On large scale individual, the delay in the collective response may…

General Finance · Quantitative Finance 2016-02-25 Lucia Bellenzier , Jørgen Vitting Andersen , Giulia Rotundo

The topological properties of interbank networks have been discussed widely in the literature mainly because of their relevance for systemic risk. Here we propose to use the Stochastic Block Model to investigate and perform a model…

Risk Management · Quantitative Finance 2017-10-25 Paolo Barucca , Fabrizio Lillo

The main contribution of the paper is to employ the financial market network as a useful tool to improve the portfolio selection process, where nodes indicate securities and edges capture the dependence structure of the system. Three…

Portfolio Management · Quantitative Finance 2019-01-15 Gian Paolo Clemente , Rosanna Grassi , Asmerilda Hitaj

In this paper we analyse the bipartite Colombian firms-products network, throughout a period of five years, from 2010 to 2014. Our analysis depicts a strongly modular system, with several groups of firms specializing in the export of…

Physics and Society · Physics 2018-10-31 Matteo Bruno , Fabio Saracco , Tiziano Squartini , Marco Dueñas

In this paper, a statistical analysis of log-return fluctuations of the IPC, the Mexican Stock Market Index is presented. A sample of daily data covering the period from $04/09/2000-04/09/2010$ was analyzed, and fitted to different…

Statistical Finance · Quantitative Finance 2015-06-03 Lester Alfonso , Ricardo Mansilla , Cesar A. Terrero-Escalante

The eigenvalues of matrices representing the structure of large-scale complex networks present a wide range of applications, from the analysis of dynamical processes taking place in the network to spectral techniques aiming to rank the…

Social and Information Networks · Computer Science 2015-03-17 Victor M. Preciado , Ali Jadbabaie

This paper highlights the significance of mesoscale structures, particularly the core-periphery structure, in financial networks for portfolio optimization. We build portfolios of stocks belonging to the periphery part of the Planar…

Statistical Finance · Quantitative Finance 2024-05-24 Imran Ansari , Charu Sharma , Akshay Agrawal , Niteesh Sahni

We analyse the structure of the distribution of eigenvalues of the stock market correlation matrix with increasing length of the time series representing the price changes. We use 100 highly-capitalized stocks from the American market and…

Physics and Society · Physics 2009-11-11 J. Kwapien , P. Oswiecimka , S. Drozdz

The cross-correlations between the exchange rate fluctuations of 74 currencies over the period 1995-2012 are analyzed in this paper. The eigenvalue distribution of the cross-correlation matrix exhibits a bulk which approximately matches the…

Statistical Finance · Quantitative Finance 2013-05-02 Sitabhra Sinha , Uday Kovur

In this study, we model the Indian stock market as heterogenous scale free network, which is then embedded in a two dimensional hyperbolic space through a machine learning based technique called as coalescent embedding. This allows us to…

Physics and Society · Physics 2025-01-10 Pawanesh Pawanesh , Charu Sharma , Niteesh Sahni

The structure of return spillovers is examined by constructing Granger causality networks using daily closing prices of 20 developed markets from 2nd January 2006 to 31st December 2013. The data is properly aligned to take into account…

General Finance · Quantitative Finance 2015-06-22 Tomáš Výrost , Štefan Lyócsa , Eduard Baumöhl

Financial markets are complex adaptive systems characterized by collective behavior and abrupt regime shifts, particularly during crises. This paper studies time-varying dependencies in Nordic equity markets and examines whether…

Portfolio Management · Quantitative Finance 2026-01-13 Maksym A. Girnyk

We study correlations of a set of stocks selected from both the New York and London stock exchanges. Results are displayed using both Random Matrix Theory approach and the graphical visualisation of the Minimal Spanning Tree. For the set of…

Physics and Society · Physics 2007-10-29 Ricardo Coelho , Peter Richmond , Stefan Hutzler , Brian Lucey

A standard technique for understanding underlying dependency structures among a set of variables posits a shared conditional probability distribution for the variables measured on individuals within a group. This approach is often referred…

Machine Learning · Statistics 2014-05-13 Elham Azizi , James E. Galagan , Edoardo M. Airoldi